AGL Energy Limited will divest 19.9% of its 20% equity in Tilt Renewables to Queensland Investment Corporation (QIC) and the Future Fund for $750 million.
Related article: AGL inks renewables PPA with Tilt for Waddi Wind Farm
In a statement, AGL said, “AGL is very proud of the business it has helped to build in Tilt and the transaction reflects the value that has been created since AGL established the Powering Australian Renewables Fund in 2016 to accelerate deployment of wind and solar renewable generation in Australia.
“AGL values the long-term strategic partnership it has established with Tilt, QIC and the Future Fund, and will continue to hold its remaining stake in Tilt following completion of the transaction.”
Tilt currently provides 1.6GW of renewable generation capacity to AGL under long term power purchase agreements. This partnership has recently been bolstered with AGL committing to take 45% of the generation from Tilt’s Palmer Wind Farm for a 15-year term and 100% of the generation from Waddi Wind Farm for a 15-year term.
As a core part of the transaction, AGL and Tilt have formed a strategic partnership that advances both Tilt’s expanding asset portfolio and AGL’s decarbonisation strategy. This collaboration facilitates offtake opportunities for a share of Tilt’s existing assets and its development pipeline.
AGL managing director Damien Nicks said “We look forward to continuing to work with Tilt, QIC and the Future Fund as Tilt delivers its development pipeline. The transaction demonstrates our commitment to realising value in our portfolio and recycling capital to invest in flexible, dispatchable capacity as we work towards our expanded 6GW target of new firming and renewable projects by FY30.”
Related article: Tilt Renewables’ Waddi Wind Farm gets federal tick
Completion of the transaction is subject to conditions and regulatory, with finalisation expected to occur by Q3FY26.
